A project has a Budget at Completion (BAC) of $500,000. The Earned Value (EV) is calculated at $200,000, while the Actual Cost (AC) has reached $250,000. Using the BAC-based formula, what is the To-Complete Performance Index (TCPI) that will help the project meet its planned budget?
The TCPI formula using the Budget at Completion (BAC) is TCPI = (BAC - EV) / (BAC - AC). In this case, TCPI = ($500,000 - $200,000) / ($500,000 - $250,000) = $300,000 / $250,000 = 1.2. This value indicates the cost performance required to meet the planned budget. The other values are incorrect because they don't follow the correct formula or contain calculation errors.
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